Financial Performance - In 2023, China Shengmu recorded revenue of RMB3,383.6 million, representing a year-on-year increase of 6.5%[9] - The Group achieved cash EBITDA of RMB991.0 million, with a net profit of RMB94.6 million, maintaining a relatively high net profit margin in the industry[10] - Sales revenue for the year ended December 31, 2023, was RMB3,383.6 million, an increase from RMB3,176.3 million in 2022[74] - For the year ended 31 December 2023, profit attributable to owners of the parent company was RMB 86.1 million, a decrease of RMB 330.4 million compared to RMB 416.5 million in 2022[110][112] - Gross profit for 2023 was RMB1,025.0 million, with a gross profit margin of 30.3%, down from 31.9% in 2022[75] Milk Production and Sales - The total milk yield increased, with 548,000 tonnes of organic raw milk sold during the year[13] - In 2023, the Group's organic raw milk sales volume increased by 19.7%, accounting for 77.0% of total raw milk sales[33] - The sales volume of organic raw milk was 0.548 million tonnes, marking a 19.7% increase from the corresponding period, with organic raw milk sales accounting for 77.0% of total raw milk sales[131] - The milk yield of milkable cows reached 11.38 tonnes, an increase of approximately 0.86 tonnes compared to the previous period, the highest level since the Group's establishment[131] Operational Efficiency and Strategy - The Group's operational efficiency was enhanced through digital transformation and ESG sustainability initiatives, receiving multiple awards for its efforts[14] - The Group continues to prioritize cost control and operational efficiency amidst a challenging market environment[27] - The Group will focus on cost control, efficiency improvement, herd optimization, and farm digitization to enhance operational capabilities[116] - The Group aims to double the sales volume of organic raw milk by 2025 compared to 2020 levels, leveraging unique resources from the Ulan Buh Desert[116] Herd Management - The number of organic cows in stock reached 96,165, with a strategic import of approximately 3,800 Australian cows to enhance herd quality[13] - The herd size increased to 148,029 heads, up from 136,344 heads in the previous year, with notable growth in fattening cows and calves[24] - The Group strategically retired inefficient cows, resulting in approximately 47.0% of the herd being milkable cows[44] - The overall quality of the herd has significantly improved, with the proportion of lactating cows at approximately 47.0%[152] Financial Position and Borrowings - As of December 31, 2023, the Group's outstanding interest-bearing borrowings amounted to RMB2,131.2 million, up from RMB1,840.2 million in 2022, with net borrowings increasing by 18.2% to RMB1,053.4 million[71] - The Group's total equity as of December 31, 2023, was RMB4,236.3 million, slightly down from RMB4,261.7 million in 2022[71] - The financial gearing ratio was 51.5%, up from 43.5% in 2022[71] Cost and Expenses - The cost of sales for raw milk amounted to RMB 2,358.6 million, representing a 9.0% increase from RMB 2,163.6 million in 2022[57] - The selling and distribution expenses rose to RMB 62.7 million, an increase of 13.7% compared to RMB 55.2 million in 2022[62] - The Group's total employee costs in 2023 amounted to RMB377.4 million, an increase from RMB330.7 million in 2022[32] - Administrative expenses increased by 18.0% to RMB166.3 million, accounting for 4.9% of sales revenue compared to 4.4% in 2022[83] Share and Equity Management - As of December 31, 2023, there were 230,986,988 award shares outstanding under the Share Award Scheme, representing 2.8% of the Company's issued shares[32] - The proposed final dividend for the year ended December 31, 2023, is HKD0.23 per ordinary share, down from HKD1.13 in 2022[119] - The Group's available reserves as of December 31, 2023, amount to RMB3,474.4 million, a decrease from RMB3,569.3 million in 2022[121] Market and Industry Context - The average price of raw milk decreased by 4.9% year-on-year to RMB4,756 per ton in 2023, down from RMB4,998 per ton in 2022[34] - The total volume of imported dairy products into China decreased significantly for two consecutive years, with a 12.0% year-on-year decrease in 2023[41] - The average price of fresh raw milk in primary dairy-producing provinces was RMB3.66/kg in the last week of December 2023, a decrease of 11.2% compared to the previous year[42] Corporate Governance and Compliance - The Group's operations complied with all applicable national and local environmental protection laws and regulations in 2023[93] - The Group is exposed to various business risks, including financial, regulatory, environmental, and natural risks[117] - The Company has adopted a Share Award Scheme effective from April 19, 2022, where shares will be purchased by a professional trustee on the market[199] Future Outlook - The 2024 Policy on Promoting High-Quality Development of the Milk Industry emphasizes stabilizing high-quality milk supply and increasing subsidies for forage storage[116] - The demonstration zone will cooperate with Mengniu Deluxe Milk brand to build the world's first desert oasis farm of Deluxe Milk[154]
中国圣牧(01432) - 2023 - 年度财报